Robert Testagrossa – Why Everyone Tells Crypto Investors To Hodl
It is fair to say that the large majority of investors in crypto don’t know all that much about it when they first get in. This is why it is a great thing that in the digital age it is so simple to get advice online from experts like, on how we should manage your investments and where we can put our money.
One of the most common things that you will hear experts tell new investors is that they should focus on hodling, which basically means hanging on to the original investment no matter what the market may do. There are a number of reasons why people suggest this, which we are going to take a look into today.
Long Term Plan
The main reason for people advising others to hodl is that this is about a long term plan for cryptocurrency. Most people suggest that in the next 5 to 10 years, the likes of Bitcoin could be worth anywhere in the region of $500,000 or more. This is what the experts are expecting nd it is how they plan to make their money. If you try and buy and sell right now then you may actually lose your seat at the table when the really big gains come in.
Trading at the best of times is tough, and that is when it comes to something like stocks and shares. When it comes to stocks and shares we have many more indicators as to which way the price is going to go, because of the news and the way in which companies operate. When it comes to crypto however this is very hard to predict and even the experts will struggle. Unfortunately a lot of new investors will try to trade their small investment up, and the result is that they end up losing money or even their original investment. Again we see a compelling reason why holding on to that original deposit may just be worthwhile.
One of the main things which puts people off buying crypto is the fact that the market is incredibly volatile. This is completely understandable and it is something which investors have to be very careful about. The danger of not hodling is that people end up selling when the price is falling and then trying to buy back in when the price once again rises. This is a time consuming way of investing and it is also one which is wrought with danger and which could see people losing their money. The best way o have peace of mind, an easy life and a comfortable investment which continues to make money is to buy your coins, and then just let them sit safely in your wallet until we see some really strong gains or all time highs.
This is why so many people will tell you to just hodl that original investment which you have made.